Mar. 16, 2021
Establishment of the Energy Innovation Initiative
Sumitomo Corporation (headquarters: Chiyoda Ku, Tokyo, Representative Director, President & CEO: Masayuki Hyodo) will establish a new business organization entitled the Energy Innovation Initiative (EII) in April 2021, which will transcend the current framework of business units and aim for the creation of next-generation businesses contributing to carbon-neutral society, and serve as a key initiative for implementing the next medium-term management plan scheduled for announcement in May 2021.
While energy demand ceaselessly increases with the rising world population and economic growth, climate change has become an urgent issue to be addressed, and the needs for a sustainable energy cycle has become higher in order to simultaneously achieve environmental burdens reduction and economic growth.
Aiming to create a next-generation business that will contribute to carbon-neutral society, by establishing sustainable energy cycle and achieving decarbonization, Sumitomo Corporation will strategically invest management resources such as internal expertise and network to the EII. Led by Senior Managing Executive Officer, the initiative will hold authority over decision making in each project, and dynamically pursue strategies.
Specifically, hydrogen, storage batteries that require development from a medium-long term perspective, forest resource and woodchip and biomass businesses that Sumitomo Corporation has a considerable industry presence in, and other next-generation energy-related businesses that various business units have been involved in, will all be consolidated into the EII. Furthermore, by employing a multilateral approach using diverse internal and external expertise and network, EII will dedicate oneself to the business expansion with the following three fields as its focus, overlooking the entire value chain.
|1.||Developing carbon-free energy (CO2 free hydrogen and ammonia etc.)|
|2.||Expanding power and energy services (large-scale storage batteries, reusable batteries business, power energy platform business, zero-emission type combined energy services business)|
|3.||CO2 capture, storage and utilization (forest-based environmental value creation business, methanation,*1 CCS,*2 and carbon emissions trading etc.)|
Through the creation of next-generation business with EII, Sumitomo Corporation aims to address key social issues including “mitigation of climate change” and the “Circular economy,” which was announced in June 2020, and contribute to carbon-neutral society.
Methanation is a technology in which the greenhouse gas carbon dioxide (CO2) is taken and synthesized with hydrogen (H2) extracted from water to produce methane (CH4).
- CCS (carbon capture and storage)
CCS is a capture and storage technology in which CO2 is isolated and trapped in an underground or seabed site.
Energy Innovation Initiative (EII)(PDF/1,506KB)
Sumitomo Corporation’s Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to the following material Issues.